Biggest falls in Indian stock market history

Following are the 10 biggest single-day falls at close:

• August 24, 2015:   1,624.51 points
• January 21, 2008:  1,408.35 points
• March 17, 2008:     951.03 points
• March 3, 2008 :      900.84 points

• January 22, 2008:   875.41 points
  
• February 11, 2008:  833.98 points
• May 18, 2008:         826.38 points
• March 13 2008:        770.63 points
• December 17, 2007:  769.48 points
• March 31, 2008:         726.85 points

Following are the 10 biggest intra-day falls for Sensex:

•     January 22, 2008:   2,272.93 points
•      January 21, 2008:   2,062.20 points
•      August 24, 2015 :   1,741.35 points
•      October 24, 2008:   1,204.88 points
•      October 10, 2008:   1,088.60 points
  
•      March 17, 2008:     1,022.25 points
•      February 11, 2008:  1,007.15 points
•      October 27, 2008:   1,003.68 points
•      October 8, 2008:    954.48 points
•      July 6, 2009:           953.61 points
  

What should you do after a stock market crash?

 Nothing

For long-term investors, the best thing to do when the stock market crashes is nothing.

Take a breath, turn off the news and — whatever you do — don't log in to view your account balances. 

Resist any urge to sell stocks

Selling stocks in panic is the worst thing you could do after a stock market crash. Successful investing is about buying low and selling high. When you sell after a crash, you do just the opposite

And if you think you can just cash out for now and then get back in when the market improves, consider this: You have no way of knowing when the market will swing back. And there is a big cost to missing just a few really good days in the stock market.

 Buy stocks (if you were going to anyway)

The best time to buy investments is when you have money to invest. The best time to sell investments is when you need money for something else.

That said, if you’ve wanted to invest but have been dragging your feet for whatever reason, you might see the stock market crash as a buying opportunity. No, you don’t know if the market is going to go back up or continue to go down. But you do know this: Stocks are about 10 percent cheaper than they were last week.

Summary

A sudden stock market crash is unnerving, but it’s not a sign of imminent financial collapse and it doesn’t mean that stocks are no longer a good long-term investment.

Unless you need cash immediately (in which case it shouldn’t have been in the stock market in the first place), do NOT sell off your stocks after a crash. The best thing to do is nothing. However, it is OK to buy some investments if you have money to do so. After things have cooled off, take time to review your investments and make any adjustments to bring your asset allocation back into balance.